The Institute of Chartered The Institute of Chartered Accountants of IndiaAccountants of India

Established by an Established by an Act of Indian ParliamentAct of Indian Parliament

““The Chartered Accountants The Chartered Accountants Act, 1949”Act, 1949”

Our MissionOur Mission

The Indian Accountancy Profession will be the Valued Trustee of World Class Financial

competencies, Good Governance and Competitiveness

Profile of ICAIProfile of ICAIWas set up in 1949 under the Chartered

Accountants Act, 1949 even before adoption of Constitution of India in 1950

Since then Profession has grown leaps and bounds in terms of Membership

and Student base

Profession in IndiaProfession in India 160K Members spread throughout the country and in different parts of the world160K Members spread throughout the country and in different parts of the world

Sizeable studentship baseSizeable studentship base

Increase in percentage of members joining industryIncrease in percentage of members joining industry

Chartered Accountants are rendering services in every walk of economic life - Chartered Accountants are rendering services in every walk of economic life - Politics, Judiciary, Government, Agriculture, Corporate, NGOsPolitics, Judiciary, Government, Agriculture, Corporate, NGOs

Profession is dominated by small firmsProfession is dominated by small firms

Increasing trends towards consolidation Increasing trends towards consolidation

Government of India looks at ICAI as Partner in Nation BuildingGovernment of India looks at ICAI as Partner in Nation Building

Technical Standards based on International StandardsTechnical Standards based on International Standards

Focus on Capacity Building in the emerging contextFocus on Capacity Building in the emerging context

ICAI ProfileICAI ProfileParticularsParticulars No.No.

ORGANIZATIONALORGANIZATIONAL

Regional OfficesRegional Offices 55

BranchesBranches 126126

Chapters AbroadChapters Abroad 2222

SPECIAL PURPOSE OUTFITSSPECIAL PURPOSE OUTFITS

CPE Study CircleCPE Study Circle 134134

CPE ChaptersCPE Chapters 4646

Reference Libraries Reference Libraries 2828

Accredited InstitutionsAccredited Institutions 273273

MEMBERSHIP (‘000)MEMBERSHIP (‘000) 167167

% in Practice% in Practice 52%52%

STUDENTS (‘000)STUDENTS (‘000) 726726

Role of ICAIRole of ICAI To regulate the profession of AccountancyTo regulate the profession of Accountancy Education & Examination of Chartered AccountancyEducation & Examination of Chartered Accountancy Exercise Disciplinary JurisdictionExercise Disciplinary Jurisdiction Input on Policy matters to GovernmentInput on Policy matters to Government Ensuring Standards of performance of MembersEnsuring Standards of performance of Members Formulation of Accounting StandardsFormulation of Accounting Standards Prescription of Engagement and Quality Control StandardsPrescription of Engagement and Quality Control Standards Laying down Ethical StandardsLaying down Ethical Standards Continuing Professional EducationContinuing Professional Education Financial Report ReviewFinancial Report Review Monitoring Quality through Peer ReviewMonitoring Quality through Peer Review Conducting Post Qualification CoursesConducting Post Qualification Courses

ICAI NetworkICAI Network

Decentralized Offices

• Bahrain • Abu Dhabi

• Botswana • Indonesia

• Doha • Jeddah

• Dubai • Kuwait

• Port Moresby (Papua New Guinea)

•London

• Riyadh •Melbourne

• Saudi Arabia (Eastern province)

•Muscat

• Singapore •Nairobi (Kenya)

• Sydney •New York

• Toronto •Nigeria

• Zambia •Ras-al-Khaimah

Standing Non-S tanding

Comm ittees

Council

The Central CouncilThe Central Council Consisting of 40 MembersConsisting of 40 Members

32 Elected Members32 Elected Members

8 Nominated by Central Government8 Nominated by Central Government

Term: Three yearsTerm: Three years

Headed by PresidentHeaded by President

Elected by the Council for one year termElected by the Council for one year term

Empowered to frame Regulations under the Act and to constitute necessary Empowered to frame Regulations under the Act and to constitute necessary standing and non-standing Committees standing and non-standing Committees

Standing CommitteesStanding Committees

Executive Committee

FinanceCommittee

ExaminationCommittee

Disciplinary Committee

(Section 21D)

Key Non-Standing CommitteesKey Non-Standing Committees

Ethical Standards

Board

Ethical Standards

Board

Accounting Standards

Board

Accounting Standards

Board

Auditing & Assurance Standards

Board

Auditing & Assurance Standards

Board

Committee on Banking, Insurance &

Pension

Committee on Banking, Insurance &

Pension

Committee on

Accounting Standards for Local Bodies

Committee on

Accounting Standards for Local Bodies

Expert Advisory

Committee

Expert Advisory

CommitteeResearch CommitteeResearch Committee

Board of Studies

Board of Studies

Corporate Laws &

Corporate Governance Committee

Corporate Laws &

Corporate Governance Committee

Committee on

Information Technology

Committee on

Information Technology

Editorial Board

Editorial Board

Committee on Economic and Commercial Laws & WTO

Committee on Economic and Commercial Laws & WTO

Key Non-Standing CommitteesKey Non-Standing Committees

Board of Discipline (Sec.21 A)

Board of Discipline (Sec.21 A)

Peer Review Board

Peer Review Board

Financial Reporting

Review Board

Financial Reporting

Review Board

Committee for Members in

Industry

Committee for Members in

Industry

Internal Audit

Standards Board

Internal Audit

Standards Board

ICAI-ICWAI-ICSI

Committee

ICAI-ICWAI-ICSI

Committee

Committee on Public Finance &

Government Accounting

Committee on Public Finance &

Government Accounting

Committee for Capacity

Building of CA Firms & SMP Committee

Committee for Capacity

Building of CA Firms & SMP Committee

Vision & Perspective

Planning Committee

Vision & Perspective

Planning Committee

Audit Committee

Audit Committee

Committee on International

Taxation

Committee on International

Taxation

Comm. On Fin. Markets & Investors’ Protection

Comm. On Fin. Markets & Investors’ Protection

Key Non-Standing CommitteesKey Non-Standing Committees

Disciplinary Committee (Sec.21B)

Disciplinary Committee (Sec.21B)

The Institute is responsive to the emerging challenges and constitutes new committees for effectively meeting these

challenges

Research Unit: ICAI-Accounting Research Foundation

Direct Taxes Committee

Direct Taxes Committee

Indirect taxes Committee

Indirect taxes Committee

Professional Development Committee

Professional Development Committee

Continuing Professional Education Committee

Continuing Professional Education Committee

International Affairs

Committee

International Affairs

Committee

Organization StructureOrganization Structure

DE P A R T M E N T S C O M M I T T E E S

S E C R E T A R Y T O T H E C O U N C I L

(S e c re ta ry to the I n s titu te )

V I C E -P R E S I DE N T

P R E S I DE N T

.

E xa m in a tion D isc ip lin a ry

M & S S A /C . & F ina n ce

H R D , P & A C o u n c il

In te rn a tio n a l A ffa irs

A d m in is tra tion

T e ch n ica l D ire c to ra te

B o ard o f S tud ies

C P E D ire c to ra te

Institute FunctionsInstitute Functions

Professional Development

AdvisoryRegulatory

ICAI – A Key National BodyICAI – A Key National Body

Offers inputs toOffers inputs to

Comptroller & Auditor General of IndiaComptroller & Auditor General of India

Ministry of Corporate Affairs, Govt. of IndiaMinistry of Corporate Affairs, Govt. of India

Reserve Bank of IndiaReserve Bank of India

Securities and Exchange Board of India Securities and Exchange Board of India

Central Board of Direct Taxes Central Board of Direct Taxes

Insurance Regulatory and Development AuthorityInsurance Regulatory and Development Authority

Departments of Central and State GovernmentsDepartments of Central and State Governments

Departments of Public EnterprisesDepartments of Public Enterprises

Important Initiative Undertaken to Align Important Initiative Undertaken to Align with Changing Economic Orderwith Changing Economic Order

Convergence with International Standards of Accounting and AuditingConvergence with International Standards of Accounting and Auditing Review and Revision of Education and training curriculumReview and Revision of Education and training curriculum Launch of Post Qualification Courses Capacity building of firmsLaunch of Post Qualification Courses Capacity building of firms Mandatory CPE RequirementMandatory CPE Requirement Peer Review MechanismPeer Review Mechanism Financial Report Review Financial Report Review Brand building – Nationally and InternationallyBrand building – Nationally and Internationally Focused approach on issues relating to Corp. Governance.Focused approach on issues relating to Corp. Governance. Facilitating changes in regulatory frames.Facilitating changes in regulatory frames. Vigorous pursuance of Mutual Recognition Agreements.Vigorous pursuance of Mutual Recognition Agreements. Arrangement with Universities for graduation qualification to CA studentsArrangement with Universities for graduation qualification to CA students Facilitating accounting reforms in various areasFacilitating accounting reforms in various areas

Examples of Involvement of ICAI in Examples of Involvement of ICAI in National OrganizationsNational Organizations

Drafting of Income Tax LawsDrafting of Income Tax Laws

Drafting of Competition LawDrafting of Competition Law

Drafting of Company LawDrafting of Company Law

Capital Market – Development and RegulationCapital Market – Development and Regulation

Corporate GovernanceCorporate Governance

Accounting & Utilization of Governmental resourcesAccounting & Utilization of Governmental resources

WTO & GATSWTO & GATS

Import – Export PolicyImport – Export Policy

Commercial and Economic LegislationsCommercial and Economic Legislations

Non Banking Financial CompaniesNon Banking Financial Companies

Education and TrainingEducation and Training

Distant Mode of EducationDistant Mode of Education

Education Through Accredited Institutions and BranchesEducation Through Accredited Institutions and Branches

Meets the requirements of international educational pronouncements of IFACMeets the requirements of international educational pronouncements of IFAC

Comprehensive theoretical and practical curriculumComprehensive theoretical and practical curriculum

Continuous review of the curriculumContinuous review of the curriculum

Highlight of the New Scheme of Education & TrainingHighlight of the New Scheme of Education & Training

I Common Proficiency TestI Common Proficiency Test

Compulsory Compulsory

II II 3½ years of Practical Training concurrent with components of Professional 3½ years of Practical Training concurrent with components of Professional Competence Examination (PCE) and Final Competence Examination (PCE) and Final

Complete 100 hours of Compulsory Computer Training before appearing for Complete 100 hours of Compulsory Computer Training before appearing for PCE.PCE.

Undergo General Management & Communication Skills (GMCS) after 18 Undergo General Management & Communication Skills (GMCS) after 18 months of practical training and completion of PCEmonths of practical training and completion of PCE

Eligible to appear for Final Examination on completion of 3 ½ years and Eligible to appear for Final Examination on completion of 3 ½ years and passing of PCEpassing of PCE

Highlights of the New SyllabusHighlights of the New SyllabusFinancial ReportingFinancial Reporting

Corporate Financial ReportingCorporate Financial Reporting

IFRS based Financial Reporting IFRS based Financial Reporting

US GAAP based Financial Reporting US GAAP based Financial Reporting

Strategic ManagementStrategic Management

Study of Business Environment Study of Business Environment

Understanding Strategic Planning and Analysis Understanding Strategic Planning and Analysis

Ability to understand and formulate Functional StrategiesAbility to understand and formulate Functional Strategies

Financial ManagementFinancial Management

Advanced Management Accounting Advanced Management Accounting

Information Technology and Systems Control Information Technology and Systems Control

Business Ethics Business Ethics

ExaminationExamination One of the largest Accounting examination networks One of the largest Accounting examination networks

Administrative conduct of examination and exam related process largely Administrative conduct of examination and exam related process largely computerized computerized

Exams are held twice a yearExams are held twice a year

Examination system considered to be of high standard & integrity worldwideExamination system considered to be of high standard & integrity worldwide

Has been lending expertise to accounting bodies in other countries Has been lending expertise to accounting bodies in other countries

Accounting Standards Convergence with IFRSsAccounting Standards Convergence with IFRSs

ICAI has decided to converge with IFRSs from accounting periods ICAI has decided to converge with IFRSs from accounting periods commencing on or after 1st Aril 2011 for listed entities and other public commencing on or after 1st Aril 2011 for listed entities and other public interests entities such as banks, insurance companies and large-sized entitiesinterests entities such as banks, insurance companies and large-sized entities

For smooth transition to the IFRSs, ICAI will take up the matter of For smooth transition to the IFRSs, ICAI will take up the matter of Convergence with NACAS, and various regulators such as the RBI, SEBI and Convergence with NACAS, and various regulators such as the RBI, SEBI and IRDA.IRDA.

ICAI would also formulate its work-plan to ensure that IFRSs are effectively ICAI would also formulate its work-plan to ensure that IFRSs are effectively adopted from 1st April 2011.adopted from 1st April 2011.

IFRSs-specific training programs will be organized for its members and others IFRSs-specific training programs will be organized for its members and others concerned to prepare them to implement IFRSs.concerned to prepare them to implement IFRSs.

IASB has also offered to help the ICAI in its endeavors towards Convergence IASB has also offered to help the ICAI in its endeavors towards Convergence with IFRSs in Indiawith IFRSs in India

Research and CPEResearch and CPE Commitment to advancement of knowledge in accountancy, auditing, taxation Commitment to advancement of knowledge in accountancy, auditing, taxation

and allied areasand allied areas

Published about 150 PublicationsPublished about 150 Publications

Expert Opinions on Applicability of StandardsExpert Opinions on Applicability of Standards

20 Compendiums over 1000 opinions20 Compendiums over 1000 opinions

More than 50 CPE materials publishedMore than 50 CPE materials published

3000 CPE programs held annually3000 CPE programs held annually

ICAI-ARF to promote research on contemporary issuesICAI-ARF to promote research on contemporary issues

Publishes a monthly journal with more than 175,000 circulationPublishes a monthly journal with more than 175,000 circulation

Professional EthicsProfessional Ethics Cardinal PrinciplesCardinal Principles

Service before selfService before self Extends beyond the legal requirementsExtends beyond the legal requirements

Some major highlightsSome major highlights

• Prohibition on other occupationsProhibition on other occupations

• Prohibition on solicitationProhibition on solicitation

• Prohibition on advertisement and Prohibition on advertisement and CanvassingCanvassing

• Prohibition on financial interest in Prohibition on financial interest in auditee companyauditee company

• Restriction on number of auditsRestriction on number of audits

• Limit on fees for non-audit Limit on fees for non-audit assignmentsassignments

• Prohibition on writing Books of Prohibition on writing Books of Accounts of Auditee companyAccounts of Auditee company

• Demarcation between External and Demarcation between External and Internal AuditorsInternal Auditors

• Professional fees for audit and other Professional fees for audit and other services received by a firm not to services received by a firm not to exceed 40% of the gross annual fees exceed 40% of the gross annual fees of the firm of the firm

Professional DevelopmentProfessional Development

Identifying Role of Profession in emerging areasIdentifying Role of Profession in emerging areas

Developing Practice AreasDeveloping Practice Areas

Upgrading and updating the knowledge and skill setsUpgrading and updating the knowledge and skill sets

Developing technical material to facilitate practice in new areasDeveloping technical material to facilitate practice in new areas

Considered as critical in the changed ScenarioConsidered as critical in the changed Scenario

Quality Control Initiative – Peer ReviewQuality Control Initiative – Peer Review

Peer Review Board of established in March 2002Peer Review Board of established in March 2002

Focus on:Focus on: Technical Standards complianceTechnical Standards compliance Quality of ReportingQuality of Reporting Office Systems and Procedures (attestation services only)Office Systems and Procedures (attestation services only) Staff training Programmes (attestation services only)Staff training Programmes (attestation services only)

5567 Strong panel of Reviewers maintained5567 Strong panel of Reviewers maintained

4234 Reviewers have undergone training4234 Reviewers have undergone training

4020 Practice units have been issued Peer Review Certificates.4020 Practice units have been issued Peer Review Certificates.

The Council of the Institute accepted the request of SEBI that audit of listed The Council of the Institute accepted the request of SEBI that audit of listed companies shall be carried out by the auditors who have undergone Peer Review companies shall be carried out by the auditors who have undergone Peer Review ProcessProcess

Quality Review BoardQuality Review Board

Central Government has constituted Quality Review Board consisting of 11 persons.Central Government has constituted Quality Review Board consisting of 11 persons.

Council of ICAI has nominated 5 members on QRBCouncil of ICAI has nominated 5 members on QRB

Chairman and other 5 members have been appointed by Central GovernmentChairman and other 5 members have been appointed by Central Government

All services provided by members (Both attestation and non attestation will be All services provided by members (Both attestation and non attestation will be subject to Quality Review)subject to Quality Review)

Disciplinary action if there is a deficiency in serviceDisciplinary action if there is a deficiency in service

Peer ReviewPeer Review

Peer Review Board established in March 2002Peer Review Board established in March 2002

Reviews by Board to ensureReviews by Board to ensure

compliance with technical standards; andcompliance with technical standards; and

existence, compliance and adherence to quality control existence, compliance and adherence to quality control

policies and procedures policies and procedures

Findings would not have any relationship with the disciplinary proceedingsFindings would not have any relationship with the disciplinary proceedings

Financial Reporting ReviewFinancial Reporting Review

Financial Reporting Review Board constituted in 2002 to review general Financial Reporting Review Board constituted in 2002 to review general purpose financial statements of certain enterprisespurpose financial statements of certain enterprises

Board’s findings would form basis for :Board’s findings would form basis for :

initiating action against auditor concerned; andinitiating action against auditor concerned; and

informing irregularity to relevant regulatory authorityinforming irregularity to relevant regulatory authority

Board seeks general purpose financial statements of top 500 companies in Board seeks general purpose financial statements of top 500 companies in India on yearly basisIndia on yearly basis

New Initiatives- Education & Training New Initiatives- Education & Training

Launch of new course for Accounting Technicians & IPCCLaunch of new course for Accounting Technicians & IPCC

Introduction of concept E-LearningIntroduction of concept E-Learning

Launch of Virtual Institute Project providing e-services to members and studentsLaunch of Virtual Institute Project providing e-services to members and students

Recast of professional curriculumRecast of professional curriculum

Lectures through Gyan Darshan Channel for CPT & PCC StudentsLectures through Gyan Darshan Channel for CPT & PCC Students

Three Months Residential Course for improving General Management & Three Months Residential Course for improving General Management & Communication SkillsCommunication Skills

New Initiatives- Education & TrainingNew Initiatives- Education & Training

Establishment of more than 100 computer labs to impart ITT Training Establishment of more than 100 computer labs to impart ITT Training all over Indiaall over India

Grant of status of approved research supervisors by the Guru Govind Grant of status of approved research supervisors by the Guru Govind Singh Indraprastha UniversitySingh Indraprastha University

Establishment of CA Student Benevolent FundEstablishment of CA Student Benevolent Fund

Setting of Centre of Excellence for CA StudentsSetting of Centre of Excellence for CA Students

MOU with Bharathiar University & Guru Jambheshwar University Of MOU with Bharathiar University & Guru Jambheshwar University Of Science And Technology (GJUS&T) Science And Technology (GJUS&T)

New Initiatives- Profession and Standards New Initiatives- Profession and Standards

Convergence to IFRS- By April 2011Convergence to IFRS- By April 2011

Convergence to Clarity Project Convergence to Clarity Project

Cap on fee for rendering services other than auditCap on fee for rendering services other than audit

Disciplinary mechanism frameworkDisciplinary mechanism framework

Focus on bridging the expectation gapFocus on bridging the expectation gap

International PresenceInternational Presence

ICAI is founder member of IFAC, CAPA, SAFA and IINICAI is founder member of IFAC, CAPA, SAFA and IIN

ICAI represented in :ICAI represented in :

IFAC - IFAC - Board, SMP Committee, Developing Nations Committee, Board, SMP Committee, Developing Nations Committee, International Public Sector Accounting Standards Board.International Public Sector Accounting Standards Board.

CAPA – Board memberCAPA – Board member

ICAI holds Permanent Secretariat, SAFAICAI holds Permanent Secretariat, SAFA

SAFA - Chairmen and member of various Committees and Working SAFA - Chairmen and member of various Committees and Working GroupsGroups

Opened New Chapters abroad- Singapore.Opened New Chapters abroad- Singapore.

MoU with University of Djibouti and ICA Australia MoU with University of Djibouti and ICA Australia

Joint Declaration with The Bahrain Institute of Banking and Finance and The Joint Declaration with The Bahrain Institute of Banking and Finance and The Certified General Accountants Association of Canada Certified General Accountants Association of Canada

MRAs with Foreign Accountancy Bodies like ICAEW & CPA Australia.MRAs with Foreign Accountancy Bodies like ICAEW & CPA Australia.

International InitiativesInternational Initiatives

International InitiativesInternational Initiatives

MOU with College of Banking and Financial Studies, Oman – For MOU with College of Banking and Financial Studies, Oman – For institutionalization of accounting profession in Oman.institutionalization of accounting profession in Oman.

MOU with Center of Excellence for Applied Research and Training (CERT), MOU with Center of Excellence for Applied Research and Training (CERT), Dubai- To conceptualize and devise an international curriculum in Dubai- To conceptualize and devise an international curriculum in accountancy integrating local needs keeping in mind various requirements of accountancy integrating local needs keeping in mind various requirements of different levels of accountancy and audit professionals.different levels of accountancy and audit professionals.

Technical assistance programme to CPA Mongolia and University of Djibouti Technical assistance programme to CPA Mongolia and University of Djibouti ongoing. ongoing.

Implementation of Guidelines for Article Training Abroad.Implementation of Guidelines for Article Training Abroad.

International Initiatives Contd.International Initiatives Contd.

ICAI being consulted by IAASB in Audit Standards Setting and by IASB in ICAI being consulted by IAASB in Audit Standards Setting and by IASB in IFRS settingIFRS setting

Playing a lead role in the area of Developing Nations, SMPs and SMEs, Playing a lead role in the area of Developing Nations, SMPs and SMEs, International Public Sector Accounting Standards, International Education International Public Sector Accounting Standards, International Education StandardsStandards

SAFA adopted ICAI curriculum as modelSAFA adopted ICAI curriculum as model Student exchange programs held with ICAB, ICAP, ICAN and ICASLStudent exchange programs held with ICAB, ICAP, ICAN and ICASL Opened an Office in DubaiOpened an Office in Dubai Initiatives for recognition of ICAI qualification by accounting bodies in other Initiatives for recognition of ICAI qualification by accounting bodies in other

countriescountries

‘‘Virtual Institute’ integrates all the regions and offices to present a unified view Virtual Institute’ integrates all the regions and offices to present a unified view of the operations of the entire Institute through a single integrated enterprise of the operations of the entire Institute through a single integrated enterprise systemsystem

It FULFILLS the members and students right to convenience, comfort and It FULFILLS the members and students right to convenience, comfort and make the benefits of Information Technology (IT) available to the members make the benefits of Information Technology (IT) available to the members and students for rendering the Institute services online anywhere-anytimeand students for rendering the Institute services online anywhere-anytime

With this all operational functions of the institute have been brought onto a With this all operational functions of the institute have been brought onto a common intranet with seamless flow and availability of informationcommon intranet with seamless flow and availability of information

ICAI - Virtual InstituteICAI - Virtual Institute

ICAI - Virtual InstituteICAI - Virtual Institute

Towards Tomorrow Towards Tomorrow Today Today

ICAI started IT initiative towards a bright future and is in it todayICAI started IT initiative towards a bright future and is in it today

ICAI Portal is effectively used to make a repository of information and ICAI Portal is effectively used to make a repository of information and knowledge accessible to the members, students and employees at the click of a knowledge accessible to the members, students and employees at the click of a button. button.

The portal brings dynamic features to the content. It functions as a Global The portal brings dynamic features to the content. It functions as a Global Gateway to ICAI. The portal’ provides a single interface to users for accessing Gateway to ICAI. The portal’ provides a single interface to users for accessing Institute’s services taking into consideration security requirements.Institute’s services taking into consideration security requirements.

The Institute of Chartered Accountants of India [Set up by an Act of Parliament]

“ICAI Bhawan”, Indraprastha Marg, New Delhi – 110 002.Phone: 91-11-39893989, 30110210

Website: www.icai.org